Integrating the Community Perspective: An exploration of Prospect Theory as a tool to derive benefits in negotiated mining agreements

This research proposes a strategy to derive compensation for risks incurred from extractive development, particularly with regards to water security risks of communities in Baja California Sur where mining activity is taking place. I propose the application of negotiated agreements between industry and community as both a forum on which to discuss concerns associated with mining and as a payment mechanism for the transfer of compensation funds. Within this framework, I will carry out a survey to compare two measures of changes in welfare used in valuation studies to obtain measures of compensation. The first measure is widely used and has roots in standard economic theory. The alternative is assumed equivalent and according to the behavioural economics literature is better suited where negative changes in welfare are concerned, such as those imposed by mining activity. TO BE CONT’D

Faculty Supervisor:

Duncan Knowler

Student:

Partner:

Universidad Autónoma de Baja California Sur

Discipline:

Sociology

Sector:

University:

Simon Fraser University

Program:

Globalink Research Award